Official Investing Thread

Discussion in 'The Mainboard' started by Joe Louis, Jul 12, 2010.

  1. tradercane

    tradercane Well-Known Member

    Damn it now I am considering buying the 115 calls.
     
  2. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    I'm very new to investing and have mostly just bought some stuff here and there, but got in on NFLX around $95 not too long ago. It's been good for me as of late but I don't really know enough about all of this yet to know what I should be expecting with earnings being released later today
     
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  3. tradercane

    tradercane Well-Known Member

    Expect a pretty big move. NFLX moves a ton after every earnings report; more so than most stocks. I expect the positive momentum to carry into the earnings later today but its just a guess.
     
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  4. tmbrules

    tmbrules Make America Great Again!
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    the NFLX options market is implying ~$14 move between now and Friday.
     
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  5. Dwight Schrute

    Dwight Schrute 7 out of every 10 attacks are from the rear.
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    At this point, what price range would WMT be considered a buy low opportunity?
     
  6. I'll Give You Asthma

    I'll Give You Asthma speak hate, get a plate, eat cake...bitch
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  7. tmbrules

    tmbrules Make America Great Again!
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    and just like that its trading $95

    Edit: its all over the map, but it moved at least $15 already
     
  8. tradercane

    tradercane Well-Known Member

    It was really a bad report.
     
  9. tradercane

    tradercane Well-Known Member

    Its now back to 104.
     
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  10. DollarBillHokie

    DollarBillHokie Usher is the worst
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    Don't believe it. They do it for the higher fees.
     
  11. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    expense ratio on VTSMX (total market index) is .17, VGTSX (total int'l) is .22. if it doesn't cost you any fees to invest in either, where's the beef?
     
  12. littletonbuff

    littletonbuff Well-Known Member
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    Open an account at TD Ameritrade - best list of Commission Free ETF's that are relevant to what you want to do. I know you said moderate risk, but you don't want to be too conservative at only 28 years old. This is keeping things really simple, but gives you good exposure to world equity markets while still not getting too crazy: put 30-40% in VTI (total US equity market), 30-40% in VEU (total All World ex-US equities), and the remaining 20-40% in AGG (diversified bond fund). The percentages are up to you and how much risk you want to take on, but that is a low cost, basic portfolio that will do everything you need as you get started.

    If you don't want to have to worry about placing actual trades, rebalancing, ect., open an account at Betterment as they have the best selection of ETF's out of the Robo Advisors IMO. Set it up so that you deposit at least $100/month, select your risk tolerance/allocation, and let them take care of everything else for you.

    Technical Analysis of the Financial Markets by Murphy, specifically Chapters 1, 3, 4, 8, and 9. One adage that I commonly hear from analysts/portfolio mangers my company works with is that fundamental analysis got them their job, technical analysis is what allowed them to keep it. Even if you think technical analysis is kind of silly, I think it is still very important to have a basic understanding of how to read a chart, being able to identify when a trend exists/changes, and simple things like support/resistance. It's a big book (often referred to as one of the 'bibles' of technical analysis) and kinda expensive so you are probably better off checking it out from a library or finding a PDF online.

    Market Wizards by Schwager - A series of interviews with a variety of historically successful investors/traders. I find this book both important and useful because it gives you insight into how some of the most successful investors/traders in history managed the most important aspect of being in the markets - the psychological/emotional aspect of it. There are several different versions and they are all great, but I enjoy the original the most.
     
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  13. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    Who are the CFA's in here?
     
  14. littletonbuff

    littletonbuff Well-Known Member
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    I'm a CFA cough:candidate:cough
     
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  15. Rabid

    Rabid Fan of: DQ Treats
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    20-40% in a diversified bond fund is a super conservative allocation for a 28 year old's IRA. 0% is aggressive, 10% is moderate, 20% is conservative. 40% would be a portfolio where you're planning to use the money in the next 5-10 years.

    Checking in. Why do you ask?
     
  16. littletonbuff

    littletonbuff Well-Known Member
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    That's the way I look at it as well, but I have found that people who say they are moderate still find 10% (and even sometimes 20%) as being way too risky for their taste. Granted this is just based off of friends/friends of friends around my age (30) that ask for advice/give me that kind of feedback when I suggest an allocation like the one you did, though I don't manage any of their $ (I only handle it for a couple of family members) so IDK.

    I guess I figured he might be similar to them since most people around that age are either all in on equities because they feel time is on their side, or they are like some of my friends in that they don't see 10-20% in bonds as being conservative enough for their tastes. That or I see people who say they have high tolerance for risk, but when they experience a drawdown (even if it's just 10% or so) it becomes readily apparent that their tolerance for risk is much lower than they thought.

    You manage money, right? How do you handle younger clients who say they are moderate/conservative and still think a 90/10 or 80/20 allocation is too risky for them?
     
  17. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    I'm trying to understand what recapitalization in Greece will do to any Greek bank stocks I own. Can't find much, but I believe that my shares will somehow decrease....
     
  18. Cheshire Bridge

    Cheshire Bridge 2017 & 2019 National Champions - Clemson Tigers
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    I'm trying to understand what recapitalization in Greece will do to any Greek bank stocks I own. Can't find much, but I believe that my shares will somehow decrease....
     
  19. Rabid

    Rabid Fan of: DQ Treats
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    Your shares will be diluted by raising new equity. In the event that they sell assets instead of raising equity, the bank would likely only be able to sell their better assets so you're losing earnings which, while not technically, effectively dilutes your shares.

    I don't have a great answer for you because I don't have to deal with clients. People with clients give us that 10%-20% allocation of their client's money to manage.

    I guess I would show them expected returns over a 30 year period from an Aggressive portfolio, a Growth portfolio and an Income & Growth portfolio and what they would project to have at age 60 from each portfolio. Then I would try to get them comfortable with year-to-year variance of the portfolios and stress that we would increase bond exposure over time to reduce the volatility.

    fwiw-I'm 35 and my retirement accounts are currently only 6% in fixed income and that allocation is split 37.5% IG bonds, 37.5% high yield & 25% preferred stock which is still aggressive as far as bond allocations go.

    I do have a taxable account that could be used for a future home remodel or a rainy day that is sitting 17% cash, 38% (muni) bonds, 19% LG Cap Stocks, 13% Sm Cap Stocks, 13% Int'l Stocks. To me, that is a good Income & Growth allocation.
     
    #5819 Rabid, Oct 15, 2015
    Last edited: Oct 15, 2015
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  20. je ne suis pas ici

    je ne suis pas ici Well-Known Member
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    just transferred over the last G into savings such that ms. swim and i have ~4 months of expenses now in the bank

    her lease runs out next august so anything on top of that is going to be a substantial cash down payment on it

    our student loans bout to get raped

    i wish more millennials werent brain dead when it comes to finances, oh well, more for me
     
  21. tradercane

    tradercane Well-Known Member

    AMZN has earnings after the close tomorrow and I am probably going to buy the weekly 600 calls expiring Friday.
     
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  22. DollarBillHokie

    DollarBillHokie Usher is the worst
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    That's not a millennials issue, it's an everyone issue.
     
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  23. DollarBillHokie

    DollarBillHokie Usher is the worst
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    How did that work out on Netflix?
     
  24. je ne suis pas ici

    je ne suis pas ici Well-Known Member
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    youre absolutely right. it was the baby boomers who fucked us over on the housing bubble and then seemingly everyone doesnt understand the concept of a credit card
     
  25. Frank Martin

    Frank Martin tough love makes better posters
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    You're too dumb to realize how much better the quality of life is now than in the 1880s.

    You can thank your republicans who killed unions and pensions so we are slowly drifting back to most people being unable to save for retirement.
     
  26. The Banks

    The Banks TMB's Alaskan
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    If anything, Millennials are better with their money than previous generations at the same age.


    Note: no evidence for this whatsoever
     
  27. je ne suis pas ici

    je ne suis pas ici Well-Known Member
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    QOL is exceptionally better dumbass, who would argue otherwise?

    and, this is the investing thread, i think the people ITT believe we can plan for our retirement better than the government/union

    do you think a 26 yr old living in their parent's basement wants some pension they may never see because they have to work in the same place for 5+ years to vest in or a 401k where they dont put enough in to match... that, while important, isnt their most pressing concern? or do you think they want 6% more in salary so they can get their own place? or pay off a shit ton of student debt at 6-7% interest rate?

    but what do i know, clearly watson knows best!
     
  28. Jake Barnes

    Jake Barnes Team Mac OG
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    Apple had quite the nosedive at EOD.
     
  29. pockets

    pockets Lesser-Known Member
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    Millennials arent saving at all, but that has a lot to with their age, as they are obviously more risk seeking people and many came to real world age age during a recession. Savings is still growing in the aggregate, and millennials will start saving more as they get older.
     
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  30. The Banks

    The Banks TMB's Alaskan
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    But how does it compare to the greatest generation, the silent generation, the baby boomers, generation x, etc at the same age
     
  31. pockets

    pockets Lesser-Known Member
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    Data is conflicting, though I think given the right circumstances millennials would be the best savers. College debt and the financial crisis hurt. It seems as if Generation X is the worst right now. Millennials dont seem to contribute to retirement plans as much but that will change and is due to the aforementioned problems.
     
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  32. * J Y *

    * J Y * TEXAS
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    Obviously higher investment IQ. "Better" is hard to say.
     
  33. littletonbuff

    littletonbuff Well-Known Member
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    I wouldn't go higher (at all). There isn't a single generation or whatever that overall I would label as having a higher investing IQ - the sad truth is that the very broad majority of Americans haven't a clue.
     
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  34. * J Y *

    * J Y * TEXAS
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    Yea but millenials have by a wide margin more information on the matter than the previous generations. They also have witnessed a financial crisis (also not exactly sure what constitutes a millennial, I'm 30 am I one?). The general feeling in my company is that this younger generation has a head start on the basics but don't have a lot of trust in the markets. But yea no one would disagree that they still don't really know a thing.
     
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  35. tradercane

    tradercane Well-Known Member

    I didn't end up doing the NFLX but I would have lost big.
     
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  36. tradercane

    tradercane Well-Known Member

    I bought the AMZN 600 calls expiring Friday. Probably a really stupid trade but I took a shot.
     
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  37. je ne suis pas ici

    je ne suis pas ici Well-Known Member
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    generally millenials are anyone born between 1980/1 and 2000/1, but i think we're seeing a ratcheting down from the back end. Many researchers are now pegging the end date around 1997 or so.
     
  38. * J Y *

    * J Y * TEXAS
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    Yea. I don't really want to get into my business on here, but we have people in that age group asking questions that previous generations didn't. Like ever. Thats what I meant by higher IQ.
     
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  39. allothersnsused

    allothersnsused Wow that’s crazy
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    Ordered The Intelligent Investor and A Random Walk Down Wall Street on Amazon last week. Read chapter one of Intelligent Investor last night. Good stuff.
     
  40. Frank Martin

    Frank Martin tough love makes better posters
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    Not a good day for my axp shares.
     
  41. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    Treasury cancelling the next 2 year auction? Debt ceiling concerns? DOW up to 300?? Good time to buy VIX IYAM ...
     
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  42. The Banks

    The Banks TMB's Alaskan
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    You think every generation has had the exact same investment IQ? There hasn't been any variation? I'm not taking that they have a high investment IQ, but that higher than other generations
     
  43. tradercane

    tradercane Well-Known Member

    I took a shot and bought the GOOGL 720 calls expiring tomorrow.
     
  44. Joe Louis

    Joe Louis no thank you turkish, i'm sweet enough
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    TVIX here we go ...
     
  45. tradercane

    tradercane Well-Known Member

    AMZN earnings are 17 cents per share vs an estimated loss of 13 cents. Its trading over 620.
     
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  46. tradercane

    tradercane Well-Known Member

    GOOGL is trading at 740 or so after earnings so not a bad couple of options trades.
     
  47. tmbrules

    tmbrules Make America Great Again!
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    Damn, I went golfing instead of piggybacking you again.

    Nice call.
     
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  48. tradercane

    tradercane Well-Known Member

    Last time AMZN had earnings it gapped up a ton and then tanked so I am selling my calls off the open tomorrow. Hopefully it doesn't fall till after the open tomorrow.
     
  49. tjosu

    tjosu This is kind of like the breakfast club, huh?
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    Was just coming in this thread to :golfclap: this move
     
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  50. hawkeyeOUTeast

    hawkeyeOUTeast Well-Known Member
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    If I were to post my company's retirement portfolio options for our 401K would someone be willing to give me some advice on what % I should put into each? I would shower you with likes. Current setup has been awful.